Friday, March 5, 2010

Lowering of stamp duty and registration fee for flats is definitely a most welcome step, providing the required impetus for development of the real estate and construction sectors, says Abdul Azeez, chairman of the Confederation of Real Estate Developers of India (Kerala) reacting to the State Budget proposals presented by Finance Minister T.M. Thomas Isaac in the Assembly on Friday.

Lowering of the stamp duty has been a long-standing demand of the sector as the State has one of the highest rates of this, he says.

People will benefit much if the duty is still lowered, but a beginning has been made. Another important aspect of the budget is the lowering of the registration fee for apartments.

While people who build houses on their own land do not have to pay the registration fee, buyers of flats have to pay a fee when these are registered in their name.

The cost of a flat fixed by the builder includes the cost of registering the land. Hence, flat owners pay for land as well as getting a flat built.

However, the builders here say the Union Budget 2010, presented by Union Finance Minister in the Lok Sabha on February has, at best, tried to dampen the recovery of the construction sector, which has been trying to find its way up from a worldwide slump. The service tax on houses will sharply increase the price, believe the builders.